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<br />ln the event of noncompliance or refusalto comply with any applicable law, regulation, executive order,
<br />OMB Circular or policy by the Subrecipient, its contractors or subrecipients, the Department may rescind,
<br />cancel, or terminate the Agreement in whole or in part in its sole discretion. The $ubtecipient is
<br />responsible for all costs or liability arising from its failure, and that of its contractors and subrecipients, to
<br />comply with applicable law$, regulations, executive orders, OMB Circularu or policies.
<br />coNFl=tcT oF TNTEREST
<br />No officer or ernployee of the Departrnent; no member, officer, or employee of the Subrecipient or its
<br />designees or agents; no member of the governing body of the jurisdiction in which the project is
<br />undertaken or located; and no other official of the Subrecipient who exercises any functions or
<br />responsibilities with respect to the project during his or her tenure, shall have any personal or pecuniary
<br />gain or interest, direct or indirect, in any contract, subcontract, or the proceeds thereof, for work to be
<br />performed in connection with the project assisted under this Agreement.
<br />The $ubrecipient shall incorporate, or cause to incorporate, in all such contracts or subaward$, a
<br />provision pro[b]!lqg such_qlgre.st qu!:pyglt !g this p1oy1.sion,-
<br />4,10 coNrnncrruc a pnagu
<br />a, The $ubrecipient shall use a competitive procurement process in the procurernent and award of
<br />any contracts with contractors or subcontractors that are entered into under the original
<br />agreement award. The procurement process followed shall be in accordance with 2 CFR Part
<br />200.318, General procurement standards, through 2O0,327, Contract provisions.
<br />As required by Appendix ll to 2 CFR Part 200, al[ contracts entered into by the Subrecipient under
<br />this Agreement must include the following provisions, as applicable:
<br />1) Contracts for more than the simplified acquisition threshold currently set at $250,000, which
<br />is the inflation adjusted smount determined by the Civilian Agency Acquisition Council and
<br />the Defense Acquisition Regulatlons Council (Councils) as authorized by 41 U.$,C, 1908,
<br />must address administrative, contractual, or legal remedies in instances where contractors
<br />violate or breach contract term$, and provide for such sanctions and penalties as appropriate.
<br />2| All contracts in excess of $10,000 must address termination for cause and for convenience
<br />by the non-federal entity including the manner by which it will be affected and the basis for
<br />3) Equal Employment Opportunity. Except as othenruise provided under 41 CFR Part 60, all
<br />contracts that meet the definition of "federally assisted constructlon contract" in 41 CFR Part
<br />60-1,3 must include the equal opportunity clause provided under 41 CFR 60-1,4(b), in
<br />accordance with Executive Order 11246, "Equal Employment Oppofiunitf' (30 FR 12319,
<br />12935,3 CFR Part, 1964-1965 Comp,, p, 339), as amencled by Executive Order 11375,
<br />"Amending Executive Qrder 11246 Relating to Equal Employment Opportunify," and
<br />-implementing regulations at 41'CFR part-60,'"Offics af "Federal Contracf'Compliance
<br />Programs, Equal Employment Opportunity, Department of Labor."
<br />4) Davis-Bacon Act, as amended (40 U.S.C, 3141-3148). When required by Federal program
<br />legislation, all prime construction contracts in excess of $2,000 awarded by non-federal
<br />entities must include a provision for compliance with the Davis-Baoon Act (40 U,S.C, 3141-
<br />3144, and 3146-3148) as supplemented by Department of Labor regulations {29 CFR Part
<br />5, "Lahor Sfandards Provisions Applicabla to Contracts Qovertng Federally Financed and
<br />Assisfed Gonstruction"). ln accordance with the statute, contractors must be required to pay
<br />wages to laborers and mechanics at a rate not less than the prevailing wages specified in a
<br />wage determination made by the Secretary of Labor. ln addition, contractors must be
<br />required to pay wages not less than once a week. The non-federalentity must place a copy
<br />of the current prevailing wage determination issued by the Department of Labor in each
<br />solicitation. The decision to award a contract or subcontract must be conditioned upon the
<br />acceptance of the wage determination, The non-federal entity must report all suspected or
<br />reported violatione to the federal awarding agency. The contracts must also include a
<br />provision for compliance with the Copeland 'Anti-Kickback" Act (40 U.S,C, 3145), as
<br />supplemented by Department of Labor regulations (29 CFR Part 3, "Contractors and
<br />$ubcontractors on Public Building or Public Work Finanoed in Whole or in Part by Loans or
<br />Grants frorn the United $tates"). The Act provides that each contractor or Subrecipient must
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